Contract analysis

I. Executive Summary The opt-out and objection deadline expired on January 2, 2024, pursuant to the Preliminary Approval Order entered by the Honorable Raymond Escobedo on October 18, 2023. The claims administrator, Meridian Settlement Services LLC (primary contact: Angela Truong, 1600 E. Fourth Street, Suite 240, Santa Ana, CA 92701; telephone: (714) 555-2100), has compiled the final data concerning class member res

II. Notice Administration Summary Class Notice was mailed on November 3, 2023, by Meridian Settlement Services LLC to 1,843 class members at their last known addresses. The mailing addresses were derived from employment records provided by AMA through its payroll vendor, NovaPay Solutions, and were cross-referenced against the United States Postal Service National Change of Address ("NCOA") database prior to the init

III. Opt-Out Analysis A. Summary Statistics The total number of valid opt-outs received by Meridian Settlement Services by the January 2, 2024 deadline is twenty-three (23). This represents 1.24% of the estimated class of approximately 1,850 individuals (23 ÷ 1,850 = 1.24%). The Settlement Agreement, at Section 12.3 (the "blow" provision), provides that AMA shall have the unilateral right to void the settlement if th

IV. Claims Data As noted above, a total of 1,262 valid claims were submitted by class members out of an estimated class of approximately 1,850 individuals, resulting in a claims rate of 68.2%. This figure represents class members who affirmatively completed and submitted claim forms to Meridian Settlement Services by the January 2, 2024 deadline. This is an exceptionally strong claims rate. In the context of Californ

V. Objection Analysis A. Overview. A total of four (4) objections were received by the January 2, 2024 deadline. This represents an objection rate of 0.22% (4 ÷ 1,850), which is well below the typical range for wage-and-hour class settlements. Each objection is analyzed individually below. In summary, none of the four objections presents a substantive concern that warrants modification of the settlement terms or deni

1. Rest period violations (Second Cause of Action) — denied for lack of common proof of a uniform policy;

2. Off-the-clock/overtime violations (Third Cause of Action) — denied for predominance of individualized issues;

3. Minimum wage violations (Fourth Cause of Action) — denied as derivative of the overtime claim;

4. Second meal period violations (Fifth Cause of Action) — denied because the auto-deduction issue applied only to the first meal period; and

5. Waiting time penalties under Labor Code section 203 (derivative claim) — denied as dependent on the non-certified substantive claims. This partial certification substantially discounted the value of the case relative to the full $38.6 million aggregate exposure. Had Plaintiffs proceeded to trial on only the certified claims, the maximum recoverable damages would have been significantly less than the $38.6 million

VI. Comparative Analysis — Opt-Outs and Objections in Context To place the opt-out and objection data in proper context, the following table compares the key metrics from this settlement to the typical ranges observed in California wage-and-hour class settlements, based on published case data and the experience of this firm: Several observations merit emphasis. First, the opt-out rate of 1.24% is at the low end of th

VII. Recommendations Based on the foregoing analysis, we make the following recommendations:

1. Proceed with Final Approval Motion. The opt-out and objection data strongly supports final approval. The opt-out rate is well below the contractual blow provision threshold, the objections are manageable, and the claims rate is exceptionally high. We recommend filing the Motion for Final Approval on January 22, 2024, as previously planned and consistent with the Court's Preliminary Approval Order briefing schedule

2. Response to Objections. We should prepare and file a Response to Class Member Objections as a separate document on January 22, 2024, concurrently with the Final Approval Motion. The response should address each of the four objections individually. The Vega objection (attorneys' fees), Kimura objection (allocation formula), and Torres objection (settlement amount) can be addressed relatively briefly — approximately

3. Supporting Declarations. The Final Approval Motion should be supported by the following declarations: (a) Declaration of Angela Truong (Meridian Settlement Services LLC) regarding the notice administration process, including details of the mailing, re-mailing of returned notices, settlement website traffic, toll-free line activity, opt-out and objection data, claims data, and the individual allocation calculations

4. Final Approval Hearing. The Final Approval Hearing is currently scheduled for February 2, 2024, at 9:00 a.m. before the Honorable Raymond Escobedo in Department 34 of the Stanley Mosk Courthouse. We should prepare a detailed oral argument outline that addresses each of the four objections, emphasizes the strong class response data, and highlights the key factors supporting final approval under the Kullar and Dunk

5. No Modification to Settlement Terms Required. Based on our review, none of the four objections warrants modification of any settlement term. The fee percentage of 33.33%, the 60/40 allocation formula, the Gross Settlement Amount of $14,750,000, and the scope of the release are all fair, reasonable, and consistent with California law and the realities of the litigation. We do not recommend any amendments to the Set

6. Notify AMA. Greg Tanaka of Whitfield Baines & Tanaka LLP and Philippa Cartwright, AMA's General Counsel, should be formally advised of the final opt-out and objection results and our assessment that final approval is on track. Mr. Tanaka has already been informally apprised of the results via our January 5 email exchange, but a formal letter or email summarizing the data and our assessment would be appropriate. We

VIII. Appendix / Attachments Reference The following appendices are referenced in this memorandum and are attached hereto or will be provided under separate cover as indicated: Appendix A: Summary of 23 Opt-Outs — includes names, assigned facilities, show units, job titles, and dates of opt-out letters. (To be provided by Meridian Settlement Services LLC upon finalization of the opt-out verification process; expected